Letters to the editor dated March 6, 2020

This refers to the editorial ‘Digital currency is back’ (March 6). The Supreme Court’s quashing of the RBI ban on cryptocurrency is a sound judgement. The RBI has been selectively erring on the side of caution for the virtual currency, when under its watch, financial institutions have been collapsing like a pack of cards.

Virtual currency complements the conventional system of payments, allowing for counterfeit currency menace to be checked, and especially with the Covid-19 outbreak, it makes more sense to switch over to such mode.

Facebook shall be shortly launching its Libra once it clears the legal hurdles and obtain requisite approvals from the competent authorities. The government, while framing crpto laws, may take cues from it. However, there is a possibility that it may go overboard and defy the SC ruling by bringing a piece of legislation which may annihilate the currency forever.

Chennai

Apropos ‘Digital currency is back’ (March 6). Indeed it is a wonder that the apex court has lifted the ban on the dealings in crypto currencies. Though the vistas have now opened for a potential $13-billion crypto market, in the Indian context, strict regulations must be drafted to prevent manipulation of the market with underhand dealings. The dealers must be under close surveillance by the government, since cryptocurrency dealings involve peer-to-peer transactions under a closed circuit and lack transparency and consistency as a legal tender medium. At a time when global terrorism is on the rise, the use of cryptocurrency for illegal money laundering and drug trafficking should be prevented and the acceptance of the cryptos must be a gradual process.

Sivakasi

This refers to ‘Gender equality pays’(March 6). Gender equality has been a topic of write-ups in the past, and is also a matter which has received strong attention from governments. The call to ‘make the effort to proactively care for the health of at least one woman in our life and contribute to building a gender equal, healthier and wealthier world’ is a message requiring the attention of all. Political status and positions of power have seen eminent women at the helm, capturing the attention of the society. But still, the ranking of women with regard to their male counterparts is not up to the mark. It is necessary that gender equality is made the subject of strong campaigns across the country. Appointment of women in positions of authority also need attention.

Coimbatore

Apropos ‘RBI to roll out Scheme of reconstruction/amalgamation for YES Bank soon’ (March 6). The bank has been facing a lot of problems in the last few years, including boardroom battles, huge divergences in NPAs, staff exodus, inability to raise capital etc. The management was reckless in lending and there was no identified thrust area. In its short span of existence, the bank entered all segments of business, resulting in the current state of affairs. The RBI could have appointed its nominee to the board of the bank much earlier. Restructuring the bank now will only give an escape route to the wrongdoers. Simultaneously, a forensic audit of the books of the Bank should be carried out and action should be taken against those who are guilty.

Mumbai

News of the proposed takeover of YES Bank by the SBI does not surprise many in the know-how of the functioning of the private sector bank. What is surprising is the fact is that the RBI has taken long time to react to the bleeding financial report of the bank. In the past, there were reports of feud within the Kapoor family in their ‘power struggle’. Flouting RBI norms and reckless sticky loans advanced without due diligence resulted in the piling up of NPAs. Things could have been ‘nipped in the bud’ if the RBI had learnt from the bitter past episodes.

Bengaluru

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